Question
1. What are the annual payments for a 4-year $4000 loan if the interest rate is % per year? Make up a loan amortization schedule
1. What are the annual payments for a 4-year $4000 loan if the interest rate is % per year? Make up a loan amortization schedule for this loan.
2. What is the present value of a stream of $1500 payments received at the end of each of years 3 through 9 if the discount rate is 10% per year?
3. What is the present value of a stream of payments consisting of $800 per year forever if the discount rate is 11% per year?
4. If the discount rate is 8% per year, what is the present value of $1000 per year for (a) 10 years (b) 20 years (c) 50 years (d) 100 years (e) forever?
5. What is the effective annual rate for a nominal annual rate of 15% with monthly compounding?
6. What is the present value of $4500 to be received 31 months from today if the effective annual discount rate is r= 10%?
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